CAVA beats Street estimates in fiscal Q1

on May 28, 2024
  • Cava reported its financial results for the first quarter on Tuesday.
  • Here's what its CEO Brett Schulman said in a press release today.
  • Cava stock is now up roughly 100% versus the start of this year.

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Cava Group Inc (NYSE: CAVA) is trading down in extended hours on Tuesday even though it reported market-beating financial results for its first quarter.

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Why is CAVA stock down in after-hours?

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The price action is interesting considering the management raised its guidance as well. $CAVA now forecasts up to $105 million of adjusted EBITDA on 4.5% to 6.5% of same restaurant sales growth in fiscal 2024.

The New York listed firm expects to open up to 54 new restaurants in total this year. Brett Schulman – the chief executive of Cava Group said in a press release today:

As we continue to invest in scalable infrastructure to support our growth, we are in a strong position to capture the significant whitespace opportunity ahead of us.

The Mediterranean food chain opened 14 net new restaurants in its recently concluded quarter. Cava stock has roughly doubled year-to-date.  

CAVA Q1 earnings snapshot

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  • Earned million that translates to 12 cents a share
  • Had $2.1 million loss ($1.30 per share) last year
  • Adjusted EBITDA printed at $33.3 million as per the earnings report
  • Revenue jumped 30.3% year-over-year to $256.3 million
  • Consensus was 1 cents a share on $237.16 million in revenue

Cava Group improved its profit margin by 280 basis points (sequentially) to 25.2% in Q1. CEO Schulman also said on Tuesday:

CAVA’s results in the first quarter demonstrate the strength of our category-defining brand, our clear leadership position in Mediterranean and our compelling differentiated value proposition.

Wall Street currently has a consensus “overweight” rating on CAVA stock.

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